Tebogo owns an advertising agency. His financial year ends on 31 May. He provided the following information for the year ended 31 May 20–1:
                                                                                                        $
Fees received from clients .............................................   37,130
Office expenses .................................................................  9,435
Rates ..................................................................................   2,125
Wages of assistant ........................................................... 19,500
Rent received from tenant ..............................................  2,300
Cash drawings ..................................................................  9,000

The following additional information is also available:

1. On 31 May 20–1 fees due from clients amounted to $1,030.
2. The rent received includes $200 which was accrued on 1 June 20–0 and $300 which was prepaid for the year ending 31 May 20–2.
3. The wages paid included $180 which was accrued on 1 June 20–0. On 31 May 20–1 wages accrued amounted to $210.

4. Office equipment was sold on 1 September 20–0 for $2,200. This had cost $3,650 and had been deprecated by $1,560 at the date of sale.

5. New office equipment, $4,200, was purchased on 1 September 20–0. This is to be depreciated at the rate of 20% per annum from the date of purchase.

6. On 1 June 20–0 Tebogo’s capital was $82,000.

a. Prepare Tebogo’s income statement for the year ended 31 May 20–1.

b. Prepare Tebogo’s capital account for the year ended 31 May 20–1. Balance the account and bring down the balance on 1 June 20–1.